**Hurricane Milton Sparks Surge in Generac Holdings, Insurance Stocks Take a Hit**
As Hurricane Milton intensified into a Category 4 storm, shares of Generac Holdings, a leading backup power generation company, soared over 7% on Monday. The storm is expected to make landfall in Florida by Wednesday, bringing with it a predicted storm surge of 8-12 feet in the Tampa Bay area.
Generac’s stock reached an intraday high of $174.08, marking a new 52-week high. The company’s surge in value comes on the heels of Hurricane Helene, which caused devastating damage and loss of life across the Southeast.
Meanwhile, insurance stocks with exposure to weather catastrophes took a hit, with shares of Allstate, Travelers, and Chubb falling over 3%. Progressive and AIG also saw declines of over 1%. Universal Insurance, based in Fort Lauderdale, suffered the largest loss, plummeting over 20% due to its significant Gulf Coast exposure.
According to Joshua Shanker, a research analyst at Bank of America, the shares of property and casualty insurance underwriters and reinsurers are likely to come under pressure as Hurricane Milton could result in a sharp reduction to their fourth-quarter earnings.
Forecasters have warned of an “extremely active Atlantic hurricane season” this year, citing warm sea surface temperatures as a key factor. As the storm season continues, investors will be keeping a close eye on the impact of Hurricane Milton and other storms on the insurance and energy sectors.
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